Vantage Drilling International Reports Third Quarter Results for 2016

HOUSTON, TX--(Marketwired - Nov 10, 2016) - Vantage Drilling International ("Vantage" or the "Company") reported a net loss of approximately $41.5 million or ($8.31) per share for the three months ended September 30, 2016 as compared to the Predecessor reporting net income of approximately $5.2 million for the three months ended September 30, 2015. The weighted-average shares outstanding for the three months ended September 30, 2016 was 5,000,053 whereas in the prior year, as a wholly-owned subsidiary, the Predecessor did not have a comparable outstanding ordinary shares.

Upon emergence from the Company's Chapter 11 restructuring on February 10, 2016, Vantage adopted fresh-start accounting, which resulted in the Company becoming a new entity for financial reporting purposes. References to "Successor" relate to the financial position and results of operations of the reorganized Vantage as of and subsequent to February 10, 2016. References to "Predecessor" refer to the financial position of Vantage as of and prior to February 10, 2016 and the results of operations prior to February 10, 2016. As a result of the application of fresh-start accounting and the effects of the implementation of our Plan of Reorganization, the financial statements on or after February 10, 2016 are not comparable with the financial statements prior to that date.

For the period from February 10, 2016 to September 30, 2016, Vantage reported a net loss of approximately $106.3 million or ($21.26) per share and the Predecessor for the period January 1, 2016 to February 10, 2016 reported a net loss of approximately $471.0 million. For the nine months ended September 30, 2015, the Predecessor reported net income of approximately $55.8 million.

As of September 30, 2016, Vantage had approximately $241.1 million of available cash as compared to $240.5 million as of June 30, 2016. Additionally, Vantage had $25.7 million available for issuance of letters of credit under its revolving letter of credit facility at the end of the quarter. Ihab Toma, CEO, commented. "Despite very challenging market conditions, we were awarded a new contract for the Emerald Driller in Qatar and continued our strong performance across our operating fleet. We remain committed to maintaining this performance for our customers while operating safely, managing costs and preserving our strong balance sheet position."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and four ultra-premium jackup drilling rigs. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells globally for major, national and large independent oil and natural gas companies. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements. Vantage disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Vantage Drilling International

Consolidated Statement of Operations

(In thousands, except per share amounts)

(Unaudited)

Successor

Predecessor

Three Months Ended September 30, 2016

Period from February 10, 2016 to September 30, 2016

Period from January 1, 2016 to February 10, 2016

Three Months Ended September 30, 2015

Nine Months Ended September 30, 2015

Revenue

Contract drilling services

$

34,755

$

99,715

$

20,891

197,134

608,003

Management fees

993

3,664

752

1,923

5,706

Reimbursables

4,194

14,860

1,897

11,033

31,285

Total revenue

39,942

118,239

23,540

210,090

644,994

Operating costs and expenses

Operating costs

30,983

93,387

25,213

93,950

284,009

General and administrative

10,128

27,991

2,558

5,058

17,749

Depreciation

18,977

49,434

10,696

31,764

95,168

Total operating costs and expenses

60,088

170,812

38,467

130,772

396,926

Income (loss) from operations

(20,146

)

(52,573

)

(14,927

)

79,318

248,068

Other income (expense)

Interest income

11

26

3

28

53

Interest expense and other financing charges (contractual interest of $23,219 for the period from January 1, 2016 to February 10, 2016)